Defining Moment

There comes a point in the life of many businesses when management has to make a technology decision that will determine the future success of the company.

The decision to implement a workers comp solution from Tata Consultancy Services (TCS) was a defining moment for this company, asserts Andrew M. Harris, director of information technology for FirstComp Insurance Company. The carrier had not grown at the rate it had planned, and older technology was identified as one of the reasons. Even so, says Harris, improved automation was important but not at the expense of additional personnel.

FirstComp took a simple approach to laying out the requirements it was seeking. Rather than solicit massive written documents [from vendors] in response to an extensive list of detailed questions, we believed we could gather more useful information about their solutions by having the vendors summarize their thoughts of how their solution would best fit FirstComp, he explains. The solution had to be flexible, open, and utilize commercially available DBMS [database management systems]. Harris felt First-Comp needed a browser-based system that allowed employees and partners to utilize the tool on their desktop, even at remote locations.

Over a four-month period, FirstComp evaluated 35 different solutions, spoke with 20 vendors, and made three site visits before selecting TCS. Members of the selection team included Harris in addition to the companys CIO, claims manager, and director of Internet development, and an outside consulting firm. The workers comp carrier thought it was important for the business users as well as the IT department to be kept informed during the process. These are the individuals who know the daily problems that occur and the weaknesses of the [previous] system, says Harris. We involved key staff members by first interviewing them to find out their wants and needs, and then we invited them to demo the products. Their input was key in ensuring the success of the new system. TCS was selected because its architecture more closely matched our desired technology direction.

The solution is Web based and was developed specifically for the workers comp segment. Moving to a Web-based solution was not a smooth change for FirstComp. The conversion of our data was ugly, Harris reports. We had incomplete information we were trying to feed into a fully functional system. The TCS software would not allow for any of the missing information. We had to find most of it so the system would function correctly. On the other end of the spectrum, automation removed several of the manual tasks the FirstComp users had been accustomed to performing.

The new system has meant the elimination of paper in the FirstComp claims area, Harris states. We used to be very paper intensive, but today we scan documents and [electronically] attach them directly to the claims file, he says. This allows the claims examiners to have all the documents at their fingertips. In the first couple of weeks the system was up and running, we were able to process an entire weeks worth of payment information in one day on the new system.

A major benefit of the system is FirstComps ability to focus attention on getting accurate information into the hands of the carriers decision-makers. This system has allowed us to track issues and problems better, adds Harris. We are able to be proactive instead of reactive.

The return on investment for First-Comp was quick, he acknowledges, spurred by no longer needing temporary personnel to process paperwork. We have been able to use our current staff members more efficiently by having them focus on their job vs. worrying about the paper trail, he says.

Changes at FirstComp have been dramatic for the business users, according to Harris, particularly in workflows and efficiencies. The users have embraced change and now constantly are looking for ways of improving the system, he maintains. Instead of focusing on the data problems and how to work around them, users are looking at accurate data and are trying to empower the customers with more and timelier information. Our company always has embraced change, especially if it makes good business sense.

ROBERT REGIS HYLE

Case File
THE PROBLEM
A workers comp insurer needed
to automate business processes
without adding personnel.

THE CARRIER
FirstComp Insurance
Web Site: www.1stcomp.com
Net Written Premium: $50 million

THE SOLUTION
Apollo workers comp solution
from Tata Consultancy Services
Web Site: www.tata.com

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